Restaurants Say Paying For Obamacare Will 'Threaten Their Very Business'

The Supreme Court upheld Obamacare today, and the restaurant business is “troubled” over the decision because they doubt they’ll be able to afford the new regulations.The restaurant industry is notoriously low-margin to begin with, and having to pay for employees’ healthcare will be a “burden,” the National Restaurant Association said today.

“Today’s ruling by the Supreme Court is troubling for restaurant operators and business owners across the country. We encourage Congress to continue efforts to repeal the law, since the Court’s decision leaves the employer requirements in place, provisions which impact restaurant operators’ ability to grow and create jobs.

“This unworkable law cannot stand as is. We need reform that addresses the increasing costs our members are faced with each year. Restaurant owners are looking for solutions that will allow them to provide better health care coverage options for their team members, but they cannot be saddled with excessive costs and regulatory burdens that threaten their very business. We ask members of Congress to take action that helps the restaurant industry continue to help create jobs and grow the national economy.”

Richie Jackson, CEO of the Texas Restaurant Association, explained to the Dallas Business Journal why restaurants are so deeply impacted by Obamacare. The cost of health care “closely equates” to the bottom line of a restaurant.

“We have a very high labour cost and very low profit margin and very little to cover that health care cost with that.

“What it really means is that menu pricing will have to go up. The concern there is, in the struggling economy and when people are seeking value to their dollar because you don’t have to go out and eat, raised prices will reduce the number of meals served. It has that kind of spiraling effect to continue to erode profitability.”